In the United States, Between 1959 and 2009, There Has

question 21

Multiple Choice

In the United States, between 1959 and 2009, there has been i) a consistent , non-changing growth rate of potential GDP per person
Ii) an increase in the standard of living based on real GDP per person
Iii) fluctuations in real GDP per person around potential GDP per person

• A) ii only.
• B) i, ii and iii.
• C) i and ii only.
• D) ii and iii.
• E) i only.

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Definitions:

Efficiency Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called deadweight loss.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Actual Production

The quantity of goods or services produced by a firm, industry, or economy within a specific period, factual and not estimated.

Consumer Surplus

The variance between what consumers are ready and capable of spending on a product or service and the actual sum they end up paying.